Calcutta, April 27 :    Calcutta, April 27:  Annapurna Foils Limited (AFL), the Hyderabad-based sick aluminium foil manufacturer, is being merged with Indian Aluminium Company (Indal) with effect from April 1 this year. The merger of the two companies will help Indal, along with its parent Hindalco, to increase the market share in foil business to 50 per cent. The post merger aggregate production capacity of Indal will be 13,000 tonnes per annum. According to the merger scheme, for every 40 shares of AFL, shareholders will get one Indal share. The AFL shareholders will also be offered direct exit route by selling their holdings at Rs 2 per share. Indal, which acquired 26.5 per cent equity stake in AFL in 1994, had increased its stake to 89.75 per cent as per terms of the order dated September 26, 2001, issued by the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). A merger scheme between AFL and Indal has been approved by the AAIFR with effect from April 1, 2002 and requisite approvals from the boards of AFL and Indal, as well as Indal shareholders have been obtained. Indal sources said the merger will strengthen the company's position in the foils segment and provide synergy for future growth and profitability. AFL is the largest manufacturer of aluminium foil in south India with a 4,000 TPA well equipped, modern foil plant located at Kollur in Hyderabad. AFL's foil products cater to a wide range of industry segments, including pharmaceuticals, processed foods, beverages, telecom cables and air conditioners.